Philly schools borrow $300M for expenses

PHILADELPHIA (AP) — Philadelphia’s financially struggling public school system is borrowing $300 million to pay for expenses through the end of the school year.

The Philadelphia School Reform Commission said Wednesday the bond sale was a necessary but expensive way for the district to meet its financial obligations as it works on a plan to close about 40 schools and cut labor costs in its $2.5 billion budget.

The Philadelphia Inquirer reports school officials found investors receptive to the borrowing, in part because of a new five-year plan and a state program guaranteeing creditors would be paid through state aid funds if the district doesn’t meet its obligations.